Sensex and Nifty advance on global rally; India-china tensions cap gains

Rupee drops 17 paise to fresh 6-week low

MUMBAI: Indian equities on Tuesday followed upbeat global markets to capture the day's peak before losing momentum due to Indo-china border tensions that capped gains on benchmark indices.

The BSE gauge Sensex settled 376.42 points or 1.13 per cent higher at 33,605.22. Intraday, the index swung about 1,069 points, and briefly ventured into the negative territory in the later part of the session reacting to India-china standoff news.

Likewise, the NSE barometer too fought a high volatility before ending 100.30 points or 1.02 per cent up at 9,914. On the Sensex chart, HDFC Bank was the top gainer, jumping around 4 per cent, followed by HDFC, ICICI Bank, Kotak Bank, Infosys and Hero Motocorp.

On the other hand, Tech Mahindra, Axis Bank, Indusind Bank and ITC were among the laggards.

Of the Sensex constituents, 15 shares closed in the red and as many scrips in the green. Sectorally, BSE finance, bankex, metal, basic materials, IT and consumer durables indices rallied up to 2.39 per cent. While telecom, realty, power, utilities and FMCG indices ended in the red.

In the broader market, midcap and smallcap indices jumped up to 0.37 per cent. Indian bourses tracked positive global markets after US Federal Reserve launched a massive programme to support businesses hit by the coronavirus lockdown, analysts said.

The Fed announced its Main Street Lending Programme and an emergency lifeline under which it will buy up to $750 billion in corporate bonds.

The plan is part of a massive financial backstop put in place by the bank to protect the economy from the worst of the virus crisis.

Investors seem to have set aside the news emerging from the border and are still hoping on the fact that liquidity will keep propping the markets, for the time being, he said. Bourses in Shanghai, Hong Kong, Tokyo and Seoul ended up to 5 per cent higher.

Stock exchanges in Europe too opened with significant gains.

On the currency front, the Indian rupee pared initial gains and closed 17 paise lower at 76.20 against the US dollar. International oil benchmark Brent crude futures rose 1.41 per cent to $40.28 per barrel.